EURUSD Technical Analysis for December 23, 2015

The EURUSD has found resistance at the back side of the trend line, early this month around 1.1059 levels. Two probable wave counts are unfolding here. 1. If the rally from 1.05 levels is an impulse, then the most likely wave from here should be lower towards 1.0720 levels. That would complete a 3 wave correction and the rally can then resume towards higher levels. 2. The pair has completed its wave 4 corrective advance at 1.1059 levels and could continue lower towards 1.0000 levels against the USD. In either case a drop till at least 1.0720 remains possible from here. Immediate resistance is seen at 1.1059 levels, while support is seen at 1.0795 levels respectively. Please note that the RSI is looking lower from below 70 levels, hence complementing the bearish view.

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